Creditor Insurance in Europe

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Finaccord’s series comprising an overview report titled Creditor Insurance in Europe plus 20
country-specific reports offers updated and detailed insights into the market for creditor insurance,
sometimes also referred to as payment protection insurance or loan-related insurance, in 20
countries. Creditor insurance in Europe was worth around EUR 40 billion in gross written premiums
in 2013, including coverage for life and permanent disability as well as the temporary disability and
unemployment elements. However, the progress of individual creditor insurance markets has been
variable in recent years with steady growth in some territories offset by declines of varying degrees
of magnitude in others, sometimes as a result of regulatory intervention.

Drawing on the results of a survey of around 1,250 lending institutions in 20 countries, the series
analyses the provision of creditor insurance by lending institutions, variances in provision by
underlying lending product, operating models for provision of creditor insurance, weighted provider
share of partnerships and the potential for selling creditor cover through distribution channels other
than the lending institutions themselves. The PartnerBASE™ datasets that accompany the reports
detail each of approximately 1,600 creditor insurance distribution deals traced by Finaccord.
Together, the reports, PartnerBASE™ datasets and market data files will provide you with the
definitive guide to current and future opportunities in creditor insurance in Europe.

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Creditor Insurance in Europe

  1. 1. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 1 Creditor Insurance in Europe Series Prospectus April 2014 Austria, Belgium, Czech Republic, Denmark, France, Germany, Greece, Hungary, Italy, Netherlands, Norway, Poland, Portugal, Romania, Russia, Spain, Sweden, Switzerland, Turkey, UK
  2. 2. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 2 Prospectus contents What is the research? What methodology has been used? How do lending institutions surveyed break down? What is the report structure? What are the key features of the research? How can the research be used? How can the PartnerBASE™ be used? Who can use the research? What are some of the key findings? What is the price? How can the research be purchased? 3 4 5 6 7 8 9 10 11-13 14 15 Page
  3. 3. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 3 What is the research? Finaccord’s series comprising an overview report titled Creditor Insurance in Europe plus 20 country-specific reports offers updated and detailed insights into the market for creditor insurance, sometimes also referred to as payment protection insurance or loan-related insurance, in 20 countries. Creditor insurance in Europe was worth around EUR 40 billion in gross written premiums in 2013, including coverage for life and permanent disability as well as the temporary disability and unemployment elements. However, the progress of individual creditor insurance markets has been variable in recent years with steady growth in some territories offset by declines of varying degrees of magnitude in others, sometimes as a result of regulatory intervention. Drawing on the results of a survey of around 1,250 lending institutions in 20 countries, the series analyses the provision of creditor insurance by lending institutions, variances in provision by underlying lending product, operating models for provision of creditor insurance, weighted provider share of partnerships and the potential for selling creditor cover through distribution channels other than the lending institutions themselves. The PartnerBASE™ datasets that accompany the reports detail each of approximately 1,600 creditor insurance distribution deals traced by Finaccord. Together, the reports, PartnerBASE™ datasets and market data files will provide you with the definitive guide to current and future opportunities in creditor insurance in Europe.
  4. 4. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 4 What methodology has been used? Finaccord’s survey of the provision of creditor insurance by lending institutions in Europe was carried out in a six-month period between December 2013 and May 2014 and focused on all significant lenders in each country. The research embraces the following information: • whether creditor insurance is marketed to borrowers; • if so, in association with which underlying lending products? • if so, which risks are covered? • if so, how… through an external underwriter, multiple external underwriters, an external broker, a joint venture underwriter, a captive underwriter or a combination of these approaches? • if so, who are the partners used for each product category? As such, and combined with additional secondary research into product and distribution innovation, this constitutes an update to the most thorough and comprehensive research into the subject available for Europe.
  5. 5. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 5 How do lending institutions surveyed break down? Finaccord’s universe of lending institutions includes mainstream retail banks, specialised lenders, automotive captives, building societies, savings banks, co-operative banks, credit unions and retail sector card issuers. For a full list of the organisations contacted for the research and included in PartnerBASE™, please contact Finaccord. Note – the segmentations above refer only to the eight countries for which research had been finished by the end of March 2014. Automotive captive,60 Bank,255 Co-operative bank / group, 25 Savings bank, 20 Specialised lender,159 Belgium,46 Czech Republic,39 France,74 Italy, 117 Poland,47 Portugal,42 Russia,78 Spain,76
  6. 6. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 6 What is the structure of the overview report? Executive Summary: providing a concise evaluation of the principal findings of the report. Introduction: offering rationale, description of methodology and some definitions. European Overview: including an overview of both the creditor insurance market and underlying retail lending markets in Europe, comparing and contrasting the recent development of the mortgage, consumer finance and credit card sectors in each country covered. Analysis of the creditor insurance market includes its segmentation by country, underlying lending product and cover type in 2009, 2013 and with a forecast to 2017, and identification of the eight largest groups in these fields by weighted share of partnerships. Also included is a summary of regulatory factors that could shape the future direction of the market. Specific country chapters (20): an in-depth analysis of the market for creditor insurance in each country including: introduction to the banking sector; analysis of the consumer lending and credit card markets; investigation into provision of creditor insurance by lending institutions and risks typically covered; overview of operating models used for provision of creditor insurance; analysis of the weighted share of partnerships of underwriters; size, segmentation and growth rate of gross premiums written for creditor insurance with historic and forecast data spanning 2009, 2013 and 2017.
  7. 7. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 7 What are the key features of the research? Key features of the reports in this series include: • quantification of creditor insurance market size, segmentation and growth: how much is this market really worth and what is its future development potential? • consideration of operating models used for creditor insurance: how does the use of captive and joint venture underwriters by lending institutions differ between countries? • calculation of weighted provider share of partnerships: Finaccord’s unique quantitative analysis identifies which underwriters of creditor insurance hold the relationships that offer the most potential; • analysis of the many types of creditor insurance policy marketed in each country and how the risks covered vary from one distributor to another; • investigation into alternative distribution channels for selling creditor insurance: a number of factors, including regulatory intervention, are increasing the potential for entities other than the lending institutions themselves to sell creditor insurance in certain countries.
  8. 8. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 8 How can the research be used? You may be able to use this report and the PartnerBASE™ that accompanies it in one or more of the following ways: • appreciate the magnitude of the opportunity in creditor insurance in Europe and how this breaks down between policies cross-sold in conjunction with mortgages, point-of-sale automotive finance, other consumer finance and credit cards; • identify partnership opportunities for creditor insurance and prioritise these according to the potential that they offer as defined by the size of lending institutions’ retail customer base; • understand the supply structure for creditor insurance in Europe and whether specialists are winning business by virtue of their focused approach; • assess the extent to which the provision of temporary incapacity and unemployment modules within creditor insurance policies is commonplace in different European countries; • gain insight into the presence of leading creditor insurance market participants including Allianz, APRIL, Aviva, AXA, BNP Paribas Cardif, CNP, Crédit Agricole, Credit Life International, Crédit Mutuel, Genworth Financial, MetLife, and The Warranty Group.
  9. 9. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com Name of organisation Country Estimated number of retail customers (000s) Product type Product offered? Operating model Partner(s) Banca Etica Italy 32.9 Creditor - mortgages Yes External underwriter Arca Banca Etruria Italy 284.9 Creditor - mortgages Yes Captive underwriter BancAssurance Popolari Banca Generali Italy 277.5 Creditor - mortgages Yes Captive underwriter Generali Banca Intermobiliare di Investimenti e Gestioni Italy 56.1 Creditor - mortgages Yes JV underwriter BIM Vita Banca Marche Italy 580.8 Creditor - mortgages Yes External underwriter Cardif 9 How can the PartnerBASE™ be used? Choose operating model Identify insurance providers Look up specific organisations Select country See the estimated number of retail customers for each organisation Note - The PartnerBASE™ also includes fields showing the category of organisation, its UHC (where part of a major group) and the UHCs that own or co-own (in the case of joint ventures) the partners used for each product type. Source: Finaccord Creditor Insurance in Europe PartnerBASE Choose product type
  10. 10. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 10 Who can use the research? 1. Insurance providers: this research is a unique guide to a valuable segment of the personal insurance market in Europe - be fully appraised of what developments in creditor insurance markets could mean for your organisation; 2. Providers of third party administration services: due to its specialised characteristics, insurers sometimes outsource the administrative processes associated with creditor insurance, thereby creating opportunities for third party providers; 3. Banks and other lending institutions: how does your organisation’s ability to cross-sell creditor insurance to individual borrowers compare with its peer group in Europe and could you use a captive insurer to underwrite third party creditor risks? 4. Regulatory and trade bodies: appreciate market and competitor dynamics in up to 20 countries across Europe from an authoritative, comprehensive and transparent information source about this often under-documented subject; 5. Management consultancies: are you helping an insurance company with its bancassurance strategy or evaluating how it can develop in creditor insurance? Understand the current status of creditor insurance in Europe, saving time and effort on researching the subject yourself.
  11. 11. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 11 What are some of the key findings? 1. Non-mortgage consumer lending balances per capita have risen strongly in Russia but have experienced variable fortunes elsewhere Note – data refers only to the eight countries for which research had been finished by the end of March 2014. Source: Finaccord analysis of central bank data Balances per capita (EUR) 2009 2010 2011 2012 2013 0 1,000 2,000 3,000 4,000 5,000 Italy France Belgium Spain Portugal Russia Czech Republic Poland
  12. 12. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 12 What are some of the key findings? (cont.) 2. Three underwriters are likely to account for almost a half of the value of creditor insurance related to consumer finance in Poland Source: Finaccord Creditor Insurance in Europe PartnerBASE CREDITOR INSURANCE RELATED TO CONSUMER FINANCE IN POLAND: BANK PROVISION RATE AND OPERATING MODELS CREDITOR INSURANCE RELATED TO CONSUMER FINANCE IN POLAND: WEIGHTED PROVIDER SHARES OF BANCASSURANCE PARTNERSHIPS ERGO Hestia, 21.2% Europa, 16.0% Cardif, 11.7% WBK-Aviva, 9.3% MetLife Amplico, 7.1% TUW SKOK, 6.2% Aviva, 3.6% Benefia, 3.3% other, 21.6% 0% 20% 40% 60% 80% 100% Product offered Operating model (see legend) Other External broker JV underwriter Captive underwriter Multiple external underwriters External underwriter
  13. 13. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 13 What are some of the key findings? (cont.) 3. Dominated in value terms by mortgage-related policies, the market for creditor insurance in France has continued to grow in spite of the stagnant economy and regulatory intervention Source: Finaccord Creditor Insurance in Europe Model trigger 0 2 4 6 8 10 2009 2013 2017 EUR billion Policies related to credit cards Policies related to other consumer finance Policies related to point-of-sale automotive finance Policies related to mortgages
  14. 14. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 14 What is the price? Reports in this series are available as standard PDF documents. The PartnerBASE™ datasets and market data files that accompany them at no further charge are in Excel format. Prices for these reports and a related title about the same subject in Latin America are as follows: For UK-based clients, VAT at the prevailing rate will be added to the basic price. Costs quoted are for a single site user licence only. For a corporate user licence, please see the next slide for further details. Invoices can be paid in EUR or USD, at the prevailing exchange rate, if preferred. Austria GBP 595 Netherlands GBP 595 Belgium GBP 595 Norway GBP 595 Czech Republic GBP 595 Poland GBP 595 Denmark GBP 595 Portugal GBP 595 Europe GBP 4,995 Romania GBP 595 France GBP 595 Russia GBP 595 Germany GBP 595 Spain GBP 595 Greece GBP 595 Sweden GBP 595 Hungary GBP 595 Switzerland GBP 595 Italy GBP 595 Turkey GBP 595 Latin America GBP 1,795 UK GBP 595 CREDITOR INSURANCE IN...
  15. 15. Creditor Insurance in Europe © Finaccord, 2014 Web: www.finaccord.com. E-mail: info@finaccord.com 15 How can the research be purchased? Simple. Just go to the relevant area of the Finaccord web site available at www.finaccord.com/order_creditor_insurance_reports.htm and fill in the online order form, clearly indicating: • report required • type of corporate user licence, if required * • billing name • address and e-mail address • purchase order number, if applicable Please allow up to one working day for the delivery of electronic copy by e-mail. * For the corporate user licence please choose one of the following options: 1. One office, one country: no supplement over and above basic cost of reports ordered 2. Multiple offices, one country: additional 20% over and above basic cost of reports ordered 3. Multiple offices, two to ten countries: additional 50% over and above basic cost of reports ordered 4. Global (unlimited offices in unlimited countries): additional 100% over and above basic cost of reports ordered VAT at the prevailing rate will be added to the price of any corporate user licence acquired by UK-based buyers.

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